According to the Nigerian Electricity Regulatory Commission’s (NERC) first-quarter report, Niger currently owes Nigeria N4.22 billion ($5.48 million) for power supply. The state power firm of Niger, Nigerien Electricity Society, has not remitted the $5.48 million invoice issued by the Nigerian market operator for power supply.
The NERC report highlighted non-payment issues among international customers, including Paras-SBEE, Transcorp-SBEE, Mainstream-NIGELEC, and Odukpani-CEET. Out of the invoices issued to bilateral customers, only North-South/Star Pipe made a partial remittance.
The NERC has mandated the Market Operator to enforce market rules to address payment indiscipline among participants. Last week, power supply from Nigeria to Niger was halted, and ECOWAS, led by President Bola Tinubu, imposed sanctions on the Nigerien military following a coup d’état.
Niger’s electricity supply is intertwined with Nigeria, with NIGELEC under contract with Nigerian power firm Mainstream Energy. Niger also receives electricity from Nigeria through Transaction Service Agreements, but it’s working on completing its own dam to reduce dependence on Nigeria’s energy supply.
Opinion: The issue of non-payment for electricity supply underscores the financial challenges faced by energy markets. The political dimension, as seen in ECOWAS’ sanctions and disconnection, further emphasizes the complex nature of energy trade and regional relationships.